Like most online banks, you won’t be able to deposit cash through the ATMs, but Discover does offer access to Zelle, a mobile application that allows for bank-to-bank transfers of money, so it’s easy to get your money where it needs to go.
Is Discover Safe?
Considering an online bank? The Penny Hoarder has rounded up the best online banks for 2023.
Discover’s checking account does not allow you to earn interest, but does allow you to earn 1% cash back each month, and Discover saving account offers a competitive rate of 3.30% APY.
Minimum starting balance
Discover Checking Account
More Information About Discover Online Savings
Discover Bank is a full service online bank that covers more than just your savings and checking accounts needs. Among the additional services are:
While it’s possible changes could be on the horizon, here’s what to know about the account as it’s currently set up.
Cashback Debit
Best for a No Fee Savings Option
Discover CDs offer competitive rates that vary depending on the length of term. Currently, Discover is offering 4.15% APY for 12 months, 4.30% for 24 months, and 4.40% APY for 5 years. We like the varied terms lengths and no account fees, but the ,500 minimum deposit is pretty steep compared to other online CDs.
Discover CDs offer competitive rates that vary depending on the length of term. Currently, Discover is offering 4.15% APY for 12 months, 4.30% for 24 months, and 4.40% APY for 5 years. We like the varied terms lengths and no account fees, but the ,500 minimum deposit is pretty steep compared to other online CDs.
Discover CDs offer competitive rates that vary depending on the length of term. Currently, Discover is offering 4.15% APY for 12 months, 4.30% for 24 months, and 4.40% APY for 5 years. We like the varied terms lengths and no account fees, but the ,500 minimum deposit is pretty steep compared to other online CDs.
Discover’s Cashback Debit account offers a simple, free checking service. This account doesn’t earn interest, but does reward you with 1% back on your Discover debit card purchases up to ,000 a month.
- Large minimum deposit
- Competitive interest rate
- ATM access
To opt for overdraft protection, simply link your account to another account, and Discover Bank will pull money from that account to cover the overdraft with no transaction fee. If you don’t opt for the protection, the bank will decline any transaction that will put your account into the red. We really like that this protection is offered for free.
Is a Discover Bank Account Worth It?
ATM access
APY
APY
Monthly fee
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If you’re looking for more flexibility, a
Discover IRA Savings account might be a better option. This retirement savings account provides the tax benefit of an IRA with the flexibility of a savings account. Plus, unlike the Discover IRA CD, there is no minimum deposit so you can start saving right away.
More Information About Discover Money Market
What Other Services Does Discover Bank Offer?
Minimum balance required to maintain
- Certificates of deposits
- Retirement accounts
- Discover Loans
Certificates of Deposit
Key Info
Retirement Accounts
Minimum balance required to maintain
Discover Bank Online Savings Account is a high yield savings account that allows you to earn interest while you save. There’s no monthly maintenance fee or required minimum balance for your account, making it a pretty simple savings account to use.
4 out of 5 Overall
Discover Bank offers convenient online banking that will fit the needs for most consumers. All of Discover’s banking accounts have no monthly fees or overdraft fees plus each account offers competitive rates to help you earn money as you save. They have a large ATM network and a solid mobile app, plus there are no minimum amount requirements in any of their basic savings or checking accounts.
Discover Loans
But is that the best choice for you and your finances? Our review will give you an honest look at the bank’s checking and savings features and other financial services Discover offers, so that you can make an informed decision about where you do your banking.
3.30% APY
Discover Mobile App
Key Features
The Discover Online Savings Account is an online high yield savings account offering competitive interest rates with no hoops to jump through.
Pros and Cons of Discover Bank
Monthly fee
Their app has a simple login as well as the ability to set a “quick view,” which can give you an account snapshot without logging in at all. Once you’re in your account, you can transfer money, pay bills, freeze or unfreeze your cards, upload a mobile check deposit, or even put in a travel notification so you won’t have issues with your card while you’re on vacation.
- No monthly fees
- Cashback on checking accounts
- Large no-fee ATM network 60,000+
- 24/7 customer service
- Competitive interest rate rates
You also won’t get pinged with any additional fees. There are no fees for online bill pay and no overdraft charges.
- No physical branches
- Steep minimum deposit for CDs and Money Market Account
Alternatives to Discover
Pros
The hefty initial deposit isn’t the only thing that makes this account best for big savers: it also offers higher returns for balances over 0,000. Account holders with balances over 0,000 receive 3.25% APY while account holders with balances under 0,000 get 3.20% APY. Both rates are competitive, but ultimately less than the interest offered by Discover Online Saving Account.
At the moment, Discover has paused the opening of new checking accounts. I think what we may want to do is move this section to below the money market & savings account sections, briefly run down some of the features but explain that this is paused as of now.
ATM access
Frequently Asked Questions (FAQ) About Discover Bank
Or, if your needs are a bit more specific, you should check out our 7 Best Banks for Students, Best Banks for Small Business, or 6 Best Banks for Military.
What Are the Benefits of Discover Bank?
Discover IRA CDs provide guaranteed returns because you lock in your rate for a set term. For example, Discover offers 4.30% APY for a 24-month term and4.40% APY for a 5 year term. Like a normal certificate of deposit, however, the money in your IRA CD is off limits until the term period is up.
As we’ve said Discover offers pretty good coverage of basic financial needs, but it’s not the only option on the market. If you’re still searching for your perfect bank, a good place to start is our
Bank Reviews From Penny Hoarder Experts.
Discover Bank’s checking account is actually called the Discover Cashback Debit account, but it operates much like a standard checking account with a few additional benefits — mainly no minimum deposit and no monthly fees. Now, at the moment, Discover is not accepting new applications for Cashback Debit accounts, but on its website, you can sign up to be alerted once applications are back open.
None, but 1% cash back on debit card purchases (on up ,000 in purchases a month)
Again, we also like the promise of no fees (except for a fee for outgoing wire transfers) and the access to Zelle and Discover’s mobile app for check deposits and transfers.
Discover Bank is a good choice for most consumers. It has no monthly maintenance fees and no overdraft fees–plus access to 60,000+ no-fee ATMs. It’s simple to use and easy to get an account.
4 out of 5 Overall
Key Features
But Discover didn’t stop with just credit cards. The financial services giant got into virtual banking with Discover Bank, an online bank that offers checking, savings and more. Discover offers two types of retirement accounts: IRA CDs and IRA Savings. 60,000+ if linked to Discover Cashback Debit, no ATM access without